THE THIRD WAVE: Look who is going into foreclosure NOW!!!
There is going to be a Congressional hearing in the next day or so to evaluate the results of TARP on financial institutions and on the housing market...wonder what they will find out?---and what they will tell us???
I have heard rumors that some of the banks used their funds that were designated to help out the homeowners, to pay off their "bailout" money. One of the contingencies of the bailout was that the banks would remain under the microscope of the government as long as they owed the Tarp money. Some financial institutions paid off the "loans" in order to escape the scrutiny of the government!
Meanwhile, the next wave of foreclosures is starting--this time it's the homeowner who has never had financial problems during the Great Recession....Until now!
FIRST WAVE: The homeowner who put nothing down on their home, had no job but was the "protected" class who the government insisted become homeowners at all costs. Below, I have included the NY Times article from 1999 regarding the Clinton administration taking the idea of home ownership for the poor:
SECOND WAVE: The homeowner who was caught off guard, trades people who lost their jobs/businesses because of the crash, the "pink slipped" financial workers, the real estate agents who were left with no income because of the housing bust.
THE THIRD WAVE: The middle class and upper-middle class small business owners who lost revenue from the recession. This would include restaurants, shops, specialty manufacturing,
The housing recession (or depression, depending upon from where you are looking at it!) has not abated--it has not ended and it has in fact become worse.
This time, the people who are being foreclosed upon are those who had no problem in the past with their finances; even in the recession, these homeowners were able to go forward without much harm from the downturn. They still had their jobs, were paying their bills on time and the possible loss of their home was so far out of the realm of reality that it never came to mind for them.
Now, the middle class and the upper middle class are under duress---they are suffering from the long drawn out financial messes caused by the initial crash of the real estate market. The Third Wave is made up of the Baby Boomers trying to retire and can't; the new level of financial or Wall Street worker who is considered "excess baggage", and all the businesses associated with a thriving real estate market. This next wave of foreclosures is sure to be the final nail in the coffin of the real estate market as we know it.
Today, Congress is meeting to hear the bad news about the failed attempts to rescue the housing market and ultimately the whole financial system of the US. The hearing is a review of the results of TARP, the $872 Billion bailout of the banks and the financial institutions that started the whole problem in the first place though their packaging of the bad loans with good in order to sell them as "Good" investments!!
TARP Failed ( What we know of as the "big bank bailout' that was put into effect after the failure of Lehman Bros)
HAMP Failed (Instituted in 2009, It helped fewer than 200,000 homeowners stay in their homes through mortgage modifications).
WILL WE HEAR WHAT THE TRUTH IS ABOUT WHAT THE EFFECTS OF "TARP" HAS HAD ON HOUSING IN THIS HEARING?. WILL THERE BE ANOTHER ATTEMPT TO MANIPULATE THE HOUSING MARKET OR WILL THERE BE A CAPITULATION OF THE GOVERNMENT TO LET THE HOUSING MARKET JUST REPAIR ON IT'S OWN???